Good on you for breastfeeding! It's the greatest gift you can give your little one!
It sounds like you're doing what you can to correct the latch, just try being a bit more gentle with your nipple next time. Instead of pulling your nipple from her mouth, slip your pinkie finger in the side and break the suction. You might have to wait there a second and get your finger between her gums but it's much better than just pulling your nipple from her mouth.
It sounds like she might be overly hungry, which could be causing her issues. She might latch on just fine and then get frustrated when the milk isn't there right away. Try feeding her at every cue she gives; sucking her hands, rooting around, etc. Crying is a late sign of hunger, so if she's gotten to that point it's more than likely she's been hungry for a few minutes and is about to be upset (I know! Oh, the horror of having to wait *a few minutes*! But it's like an eternity to them).
As for the lip blisters, that's actually a sign of a good latch. She wouldn't have that blister in the right area of the top of her lip wasn't rubbing against your breast. So take the lip blister as a good sign.
Give it a couple of days and see if with these techniques things don't get better. If they don't, go to llli.org and find a La Leache League meeting near you and try to make it to one. The ladies there will be able to help. If you can't make it to a meeting you can email a leader as well (I've done this before and she was very helpful).
Good luck!